When nobody’s buying, you don’t need so many boxes

NEW YORK (Reuters) – Industry consolidation, improved efficiencies and a slowdown in the U.S. economy are likely to drive further U.S. box plant closures in the months ahead, top industry executives told the Reuters Paper Summit.

The containerboard industry has been battling with falling domestic demand and a sharp escalation in costs, bruising stocks in the sector over the last few months.

“I think we will be in a position later this year to start talking about where some of the box plant rationalizations might take place,” said Tim Nicholls, chief financial officer of International Paper (IP.N: Quote, Profile, Research, Stock Buzz